STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of )

)

The State of Connecticut and )

)

PSEG Power Connecticut LLC )

Trading Agreement

and Order No. 8241

.~.

Whereas, the Commissioner of Environmental Protection

("Commissioner") and PSEG Power Connecticut LLC ("PSEG") agree

that it is in the public interest that they work cooperatively

to improve the air quality within the State of Connecticut and

that the use of emission reduction trading will achieve chis

result in a timely and cost-effective manner:

A. At the request and with the agreement of PSEG, the

Commissioner finds the following:

PSEG is an exempt wholesale electric generating

company with its principal place of business in

Newark, New Jersey. On December 6, 2002 PSEG

purchased from Wisvest-Connecticut, LLC and now owns

one fossil fuel-fired electric generating station,

Bridgeport Harbor Station, at 1 Atlantic Street in

Bridgeport, Connecticut ("facility").

2. At the facility, PSEG operates Bridgeport Harbor

Station Unit 3, Connecticut Permit Number 015-0089, a

tangentially-fired boiler, currently rated at 400

megawatts ("boiler"). The boiler has the dual capacity

to operate on coal and/or fuel oil (No. 6 or No.2)

No.2 fuel oil is used primarily as a start-up fuel. A

continuous emissions monitor ("CEM"), certified to 40

Code of Federal Regulations ("CFR") Part 75, measures

nitrogen oxide ("NOx") emissions from the boiler.

3. During the year 1990, prior to installation of the new

low-NOx firing system, and based on CEM monitoring,

data, the av~rage annual NOx emission rate for

Bridgeport Harbor Station Unit 3 was 0.58 pounds per

million British thermal units ("lbs/MMBtu") of heat

input when operating on coal, 0.28 Ibs/MMBtu of heat

input when operating on No.6 fuel oil and 0.16

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PSEG Power Connecticut LLC 2 Trading Agreement and

Order No. 8241

4.

Ibs/MMBtu of heat input when operating on No. 2 fuel

oil. On and after May 31, 1995, the Regulations of

Connecticut. State Agencies ("Regulations") require

that BridgrPort Harbor Station Unit 3 emit NOx at a

rate no g~eater than 0.38 Ibs/MMBtu of heat input

when operating on coal, 0.25 Ibs/MMBtu of heat input

when operating on No.6 fuel oil and 0.20 Ibs/MMBtu

of heat input when operating on NO.2 fuel oil.

In December 1993, The United Illuminating Company,

through its contractors, completed installation and

began to test and make fully operational, a new lowNOx firing system at the facility, thereby reducing

the boiler's NOx emission rates below its permitted,

allowed and actual 1990 emission rates. Such

control system enabled PSEG's boiler to frequently

meet and' operate below the emission limitation

specified in Section 22a-174-22(e) of the

Regulations.

5. Pursuant to Section 22a-174-22(j) of the

Regulations, PSEG intends to acquire and generate

approved DERCs until May 1, 2005 at the facility.

Approved DERCs are defined for purposes of this

Trading Agreement and Order as those for which the

Commissioner has provided written authorization for

use in compliance with Section 22a-174-22 of the

Regulations.

6. PSEG will acquire approved DERCs monthly on an asneeded basis, as determined by actual NOx emissions

in the event that the 24-hour average of actual NOx

emissions exceeds the NOx emission limitations of

Section 22a-174-22(e) of the Regulations and,

starting on October 1, 2003, and during the period

from October 1 through April 30, inclusive, in the

event that the non-ozone season emission rate

exceeds the emission rate specified in Section 22a174-22(e) (3) of the Regulations.

.~

7. Upon issuance of this Trading Agreement and Order,

and until May 1, 2005 for the ozone season and until

October 1, 2003 for the non-ozone season, PSEG may
PSEG Power Connecticut LLC 3 Trading Agreement and

Order No. 8241

8.

obtain approval of actual reductions in NOx

emissions, generated by operating the boiler at a

rate which is below 0.38 lbs/MMBtu of heat input

when operating on coal, 0.25 lbs/MMBtu of heat input

when ope~ating on No.6 fuel oil, and 0.16 Ibs/MMBtu

of heat input when operating on NO.2 fuel oil, for

use as discrete emission reduction credits

("DERCs"). If DERCs are created during the ozone

season, PSEG may obtain approval for such reductions

for use as Budget emission reduction credits

("BDERCs") .

Starting on October 1, 2003, and during the" period

from October 1 through April 30, inclusive, each

year until May 1, 2005, PSEG may only obtain

approval of actual reductions in NOx emissions,

generated by operating the boiler at a rate which is

below 0.15 Ib/MMBtu during the non-ozone season on

coal, NO.6 oil, and/or No.2 oil.

·0-

9. When properly documented by PSEG, and approved by the

Commissioner, the reductions in NOx emissions

identified above, and as computed in accordance with

the terms of this Trading Agreement and Order, will

conform to the requirements of Section 22a-174-22 (j) (3)

of the Regulations. Specifically, the reductions will

be,

Real because they result in a reduction of actual

emissions released into the air, net of any

consequential increase in actual emissions resulting

from shifting demand. The emission reductions are

properly measured, recorded and reported.

Quantifiable because they are based on continuous

emission monitoring data as applied in an appropriate

reliable and replicable protocol, providing the rate

and total mass amount of reduction.

Surplus because they are not required by any

Connecticut statute or regulation mandated by a current

State Implementation Plan ("SIP"), and are not

currently relied upon in any applicable attainment
PSEG Power Connecticut LLC 4 Trading Agreement and

Order No. 8241

plan, any reasonable further progress plan or milestone

demonstration.

Permanent pecause the advanced control system is in

place an~ operating, and an appropriate tracking system

is in place to monitor all data required to verify and

quantify the creation of DERCs.

Enforceable because the DERCs are approved by the

Commissioner retrospectively after the submission by

PSEG of the seasonal or annual reports that will

document their creation.

B.l. Ozone season 3DERCs may be generated and used in accordance

with this Trading Agreement and Order.

B.2. Upon sufficient documentation as prescribed below, the

Commissioner may provide written approval of the generation

of DERCs by PSEG retrospectively. Approved DERCs and BDERCs

generated by PSEG may be held by PSEG or transferred to

other persons in accordance with this Trading Agreement and

Order.

B.3. The Commissioner, in accordance with the provisions of this

Trading Agreement and Order, pursuant to Section 22a-174-

22(d) (3) of the Regulations, hereby allows PSEG to comply

with Section 22a-174-22(d) (1) of the Regulations through use

of DERC trading.

C. With the agreement of PSEG, the Commissioner, acting under

Sections 22a-6, 22a-171, 22a-174, 22a-176, and 22a-177 of

the Connecticut General Statutes, orders PSEG as follows:

1. DERC generation.

During the ozone season until May 1, 2005 and during

the non-ozone season until October 1, 2003:

a. For purposes of generating DERCs from the boiler at

the faCility, PSEG shall use 0.38 Ibs/MMBtu of heat

input when operating on coal, 0.25 Ibs/MMBtu of heat

input when operating on No.6 fuel oil and 0.16

lbs/MMBtu of heat input when operating on No. 2 fuel

oil as the baseline emission rates for the boiler, or
PSEG Power Connecticut LLC 5 Trading Agreement and

Order No. 8241

o

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the proportioned baseline emission rate set forth in

footnote 2 of paragraph C.6. of this Trading

Agreement and Order, when simultaneously operating on

more th~n one fuel. PSEG shall use the above

refereQced baseline emission rate(s) when calculating

the proportioned baseline emission rate.

i. When calculating DERCs, PSEG shall use the lower

of daily total CEM-calculated MMBtu value or

actual fuel usage data for the boiler in

MMBtu/day, when determining heat input.

ii. Ten (10) percent of all DERCs (tons) generated by

the boiler shall be retired by the facility and

permanently removed from all calculations on a

daily basis to assure a benefit to the

environment.

b.Starting on October 1, 2003 and until May 1, 2005

during the non-ozone season:

For purposes of generating DERCs from the boiler at

the facility, PSEG shall use 0.15 lbs/MMBtu of heat

input when operating on coal, No.6 fuel oil,

and/or No. 2 fuel oil as the non-ozone season

baseline emission rate for the boiler.

i.When calculating DERCs, PSEG shall use the lower of

non-ozone season total CEM-calculated MMBtu value

or actual fuel usage data for the boiler in

MMBtu/non-ozone season, when determining heat

input.

ii.Ten (10) percent of all DERCs (tons) generated by

the boiler shall be retired by the facility and

permanently removed from all calculations on a nonozone season basis to assure a benefit to the

environment.

c. Non-ozone Season Restrictions. Non-ozone season NOx

DERCs generated by PSEG shall be created and approved

in accordance with this Trading Agreement and Order,

and shall remain valid until they are used or until
PSEG Power Connecticut LLC 6 Trading Agreement

and Order No.

8241

\ .....

2.

their vintage expiration date, whichever occurs first.

d. Ozone Season Restrictions. The boiler is subject to

Sec~ion,22a-174-22a of the Regulations ("NOx Budget

Program") in 1999 and every year thereafter. The

boiler may generate ozone season BDERCs to comply with

Section 22a-174-22 of the Regulations in accordance

with paragraph C.I.a. of this Trading Agreement and

Order and the following conditions and restrictions:

i.BDERCs shall only be generated by the boiler from

May 1 through September 30 of a given year.

ii.BDERCs· shall only be used by other NOx Budget

Program sources located in Connecticut.

iii.BDERCs shall only be used to offset ozone season

excess emissions, and shall not be used for

compliance during the non-ozone season.

iv.3DERCs generated during a given year shall only be

used during the following ozone season. BDERCs may

be generated until May I, 2005 under this Trading

Agreement and Order. BDERCs are subject to all DERC

requiremen~s set forth in this Trading Agreement and

Order except for those requirements pertaining

solely to non-ozone season DERCs and as otherwise

may be provided.

During the ozone season until May 1, 2005 and during the

non-ozone season until October 1, 2003:

In requesting approval of DERCs generated by the boiler,

PSEG shall provide documentation containing a sample

spreadsheet with calculation formulas used to determine

reported numbers; monthly operating reports of actual

fuel usage including the fuel BTU content, number of

barrels, gallons, and cubic feet used for each fuel

type; daily MMBt~ for each fuel type and actual heat

input based upon CEM-recorded data; daily weighted and

unweighted actual NOx emission rates (24-hour average) ;

and DERCs generated using the baseline emission race(s),

or the proportioned baseline emission rate referenced in

paragraph C.l. of this Trading Agreement and Order, net
PSEG Power Connecticut LLC 7 Trading Agreement

and Order No.

8241

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3.

of the applicable environmental discount.

During the non-ozone season starting on October 1, 2003

and until May 1, 2005:

In reques~ng approval of DERCs generated by the boiler,

PSEG shall prOVide documentation containing a sample

spreadsheet with calculation formulas used to determine

reported numbers; non-ozone season operating reports of

actual fuel usage including the fuel BTU content, number

of barrels, gallons, and cubic feet used for each fuel

type; non-ozone season MMBtu for each fuel type and

actual heat input based upon CEM-recorded data; nonozone season actual NOx emission rates (seven month

average); and DERCs generated using the 0.15 Ib/MMBtu

baseline emission rate(s), net of the applicable

environmental discount.

When the daily or non-ozone season CEM-recorded NOx

emission rate is used to calculate DERCs generated by

the boiler, PSEG shall not include missing data

calculated in accordance with any missing data

substitution procedures, including those allowed under

40 CFR Part 75.

4. In order to consider CEM-recorded NOx emission rates

valid for DERC,approval, all NOx and CO2/02 CEMs must

comply with 40 Code of Federal Regulations Part 75.

5. Upon sufficient documentation, as determined by the

Commissioner, that PSEG has met the requirements of this

Trading Agreement and Order, the Commissioner may

provide written approval of DERCs generated by PSEG

retrospectively. Requests for approval of all DERCs

generated shall be submitted in writing to the

Commissioner. Such requests shall be compiled on a

monthly or seasonal (during the non-ozone season only

starting on October 1, 2003) basis and shall be

submitted at least on an annual basis. Approved DERCs

generated by PSEG under this Trading Agreement and Order

may be held or transferred to other persons.

6. When the boiler has daily NOx emissions below the

applicable baseline emission rate(s), or the

proportioned baseline emission rate, or when the boiler

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PSEG Power Connecticut LLC 8 Trading Agreement

and Order No.

8241

has seasonal NOx emissions below 0.15 Ib/MMBtu during

the non-ozone season starting on October 1, 2003, PSEG

shall calculate the amount of DERCs generated on a , daily/seaqonal basis (as applicable) as follows:

DERCs (tons) = {[Total heat inputl of all fuels in MMBtu

x ((proportioned baseline emission rate 2

) (the CEMrecorded NOx emission rate 3 ))) +- 2000 lbs/ton} x (0.90).4

1 Heat input shall be calculated using the lower of CEMrecorded data or actual fuel usage data in MMBtu per

unit of fuel combusted.

2 This rate shall be calculated by l)multiplying the heat

input of each fuel combusted by the baseline emission

rate(s) for such fuel; 2) summing those products; and

3) diViding the sum by the total heat input. If the

boiler is operating exclusively on one fuel, PSEG may

replace the proportioned baseline emission rate with

the applicable baseline emission rate, for that fuel.

Starting on October 1, 2003, the baseline emission rate

during the non-ozone season shall be 0.15 Ib/MMBtu.

3 During the ozone season until May 1, 2005, and during

the non-ozone· season until October 1, 2003, this rate

shall be calculated pursuant to the methodology

described in 40 Code of Federal Regulations Part 75 and

weighted pursuant to the Department's policy statement

entitled "Guidance for Calculation of Emission

Reduction Credits and Determination of Compliance with

NOx RACT for Sources Subject to 40 CFR {Acid Rain

Sources)H dated 12/18/98 which is attached to and

incorporated by reference into this Trading Agreement

and Order as part of Attachment 1.

Ten (10) percent of all DERCs (tons) generated by the

boiler shall be retired by the facility and permanently

removed from all calculations on a daily basis to assure

a benefit to the environment. Starting on October 1,

2003, during the non-ozone season, the ten percent

discount shall be retired by the facility and

permanently removed from all calculations on a seasonal
PSEG Power Connecticut LLC 9 Trading Agreement

and Order No.

8241

basis to assure a benefit to the environment.

7. DERC Use. Approved DERCs shall be acquired for

complianc~ with the emission standards in Section 22a174-22 of the Regulations for the period begi~~ing

November 1, 2002 and continuing until PSEG achieves

permanent compliance for the boiler with the emission

standards in Section 22a-174-22(e) of the Regulations or

until May 1, 2005, whichever occurs first. PSEG shall

acquire approved DERCs, and document and record the

amounts of NOx emissions and DERCs used by serial number

(if assigned) by the boiler each day and starting.on

October 1, 2003, also each non-ozone season, and shall

maintain and provide such records in accordance with the

following and Section 22a-174-4 of the Regulations,

until May 1, 2005:

a. At all times:

Before the first day of each month, calculate

projected worst case DERCs required for that

calendar month as follows:

DERCs (tons) = {[estimated worst case NOx emission

rate in Ibs/MMBtu - ((0.95) x (NOX RACT limit or

proportioried emission rate calculated pursuant to

Section 22a-174-22 (f) (2) (A) of the Regulations in

lbs/MMBtu))J x (Estimated fuel use in MMBtu)) "

2000 pounds.

No later than the twentieth day of each month, PSEG

shall calculate DERCs used in the preceding

calendar month, as follows:

(1) For the boiler on each day, determine whether

the 24-hour average NOx emission rate* is less

than the baseline emission rate or greater

than the NOx RACT limit.

(2) When the boiler has a daily NOx emission rate

(24-hour average) exceeding the NOx RP.CT

limit, calculate the amount of DERCs used, as

follows:
PSEG Power Connecticut LLC 10 Trading Agreement

and Order No.

8241

b.

DERCs (tons) = {[(CEM-recorded NOx daily average

emission, rate in lbs/MMBtu*) - ((0.95) x (NOx RACT

limi~ or proportioned emission rate calculated

pursuant to Section 22a-174-22(f) (2) (A) of the

Regulations in lbs/MMBtu»)] x (actual fuel use in

MMBtu)) • 2000 pounds.

*This rate shall be calculated pursuant to the

methodology described in 40 CFR Part 75.

During the non-ozone season starting on October 1,

2003,

Starting on October 1, 2003, and during the period

from October 1 through April 30, inclusive, each

year until May 1, 2005, the boiler shall, in

addition to meeting the 24-hour emission limit in

Table 22-1 of Section 22a-174-22 of the

Regulations, meet a non-ozone season emission limit

of 0.15 Ib/MMBtu. Prior to October 1, 2003 and

October 1, 2004, PSEG shall estimate and acquire

the amount of non-ozone season DERes or allowances

needed to comply with Section 22a-174-22(e) (3) of

the Regulations as follows:

Estimated DERCs (tons) .= [Estimated fuel use in

MMBtu from October 1 through April 30 x (Estimated

max~mum emission rate in Ib/MMBtu during October 1

through April 30 - (0.95 x 0.15 lb/MMBtu))] ) 2000

pounds.

No later than May 31 of 2004 and 2005, calculate

DERCs used in the preceding non-ozone season as

follows:

DERCs (tons) = [Actual fuel use in MMBtu from

October 1 through April 30 x {Actual emission rate

in lb/MMBtu during October 1 through April 30 -

(0.95 x 0.15 lb/MMBtu))) ) 2000 pounds.

PSEG shall acquire sufficient approved DERCs no

/
PSEG Power Connecticut LLC 11 Trading Agreement

and Order No.

8241

later than the first day of each month to assure

compliance with the emission standards in Section

22a-l7~-22 of the Regulations for, at a minimum,

that~alendar month. With the exception of 3DERCs,

excess DERcs from previous months can be applied to

subsequent months. BDERCs are subject to the

limitations set forth in paragraph C.l.d. of this

Trading Agreement and Order.

c. PSEG shall maintain documentation to attest to the

fact that DERCs used during the ozone season were

generated during the ozone season. Generator

certification of this fact shall be sufficient.

.:~ ,0··.

d. Pursuant to Section 22a-l74-22 (d) (3) of the

Regulations, PSEG may use NOx allowances, pursuant

to Section 22a-174-22{j) of the Regulations to

achieve all or a portion of the reductions required

by Section 22a-174-22 of the Regulations. k~y

allowance used for compliance with Section 22a-l74-

22(e) of the Regulations shall be subject to all

restrictions and/or requirements applicable to

DERCs contained in this Trading Agreement and

Order. E~ch allowance used for compliance with

Section 22a-174-22 of the Regulations shall be

equivalent to one discrete emission reduction

credit and shall be deducted from PSEG's NOx Budget

Program compliance account upon such use.

Allowances shall be considered used for compliance

with Section 22a-174-22 of the Regulations when

they are transferred from the facility's compliance

account or overdraft account to a State of

Connecticut NOx allowance retirement account.

i .I ,~

8. DERC Doubling. At a minimum, DERCs required shall be

adjusted upwards by 100% if DERCs are not in PSEG's

possession prior to the first day of each month and,

starting on October 1, 2003, each non-ozone season.

9. Vintage Restrlction. For the purposes of compliance

with Section 22a-174-22 of the Regulations,

DERCs/allowances shall only remain valid for five (5)
PSEG Power Connecticut LLC 12 Trading Agreement

and Order No.

8241

calendar years from the year of the

generation/allocation of such DERCs/allowances.

DERCs/allowances generated/allocated more than five {S)

calendar xekrs ago are not valid for use for compliance

with Section 22a-174-22 of the Regulations.

Notwithstanding the above, DERCs/allowances

generated/allocated prior to calendar year 2000 are

valid for use for compliance with Section 22a-174-22 of

the Regulations up to and including December 31, 2004.

10. When the daily or non-ozone season CEM-recorded NOx

emission rate is used to calculate DERCs used by the

boiler, PSEG shall include missing data calculated in

accordance with missing data substitution procedures

under 40 CFR Part 75.

11. PSEG shall maintain records for the boiler showing daily

NOx mass emissions, actual NOx emission rates (24-hour

average), and starting on October 1, 2003 non-ozone

season NOx emission rates. PSEG shall also maintain

records showing a daily total of all DERCs used and

generated net of the applicable environmental discount.

12. No later than March 1 of every year after issuance of

this Trading Agreement and Order, PSEG shall include

with the Annual Emission Statement provided to the

Commissioner, a record of each sale or other transfer,

and use of any and all of the DERCs approved within and

subsequent to issuance of this Trading Agreement and

Order uncil all such DERCs have been used. PSEG shall

also include actual NOx emissions from the boiler, and

the amount of all DERCs used (including serial numbers

(if assigned) and approved DERCs generated and/or

purchased from other facilities), generated and/or

approved for the previous calendar year. These reports

shall be on a form prescribed by che Commissioner.

Should PSEG choose to discontinue the generation of

DERCs, PSEG shall nocify the Commissioner in writing

upon discontinuance.

, ..,- 13 . PSEG shall retain records and supporting documentation

as described in this Trading Agreement and Order for a
PSEG Power Connecticut LLC 13 Trading Agreement

and Order No.

8241

,

, .

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minimum of five years, commencing on the date such

records were created. PSEG shall provide the records

specified apove to the Commissioner within thirty (30)

days of re~eipt of a written request from the

Commissioner.

14. Approvals. PSEG shall use best efforts to submit to the Comm~ss~oner all documents reauired by this Trading Agreement and Order in a compfete and approvable form.

If the" Commissioner notifies PSEG that any document or

other action is deficient, and does not approve it with

conditions or modifications, it is deemed disapproved,

and PSEG shall correct the deficiencies and resubmit it

within the time specified by the Commissioner or, "if no

time is specified by the Commissioner, within 30 days of

the Commissioner's notice of deficiencies. In approving

any document or other action under this Trading Agreement and Order, the Commissioner may approve the

document or other action as submitted or performed or

with such conditions or modifications as the

Commissioner deems necessary to carry out the ourposes of this Trading Agreement and Order. Nothing In this

paragraph shall excuse noncompliance or delay.

15. Definitions. As used in this Trading Agreement and

urder, "Commissioner" means the Comrn1ss~oner or a

representative of the Commissioner; "Ozone season" means

the period from May 1 through September 30 in any given calendar year, and "NOx RACT" means NOx Reasonably

Available Control Technology. The date of "issuance" of

this Trading Agreement and Order is the date the Trading Agreement and Order is deposited in the U.S. mail or

personally delivered, whichever is earlier.

16. Dates. The date of submission to the Commissioner of

any oocument required by this Trading Agreement and

Order shall be the date such document is received by the

Commissioner. The date of any notice by the

Commissioner under this Trading Agreement and Order,

including but not limited to notice of a~proval or

disapproval of any document or other act~on, shall be

the date such not~ce is deposited in the U.S. mail or is

personally delivered, whichever is earlier. Except as

otherwise specified in this Trading Agreement and Order,

the word "day" as used in this Trading Agreement and

Order means calendar day. Any document or action which

is required by this Trading Agreement and O~der to be

submitted or performed by a date which falls on a

Saturday, Sunday or a Co~~ecticut or federal holiday

shall be submitted or performed by the next ,day which is

not a Saturday, Sunday or Connect~cut or feoeral
PSSG Power Connecticut LLC 14 Trading Agreement

and Order No.

8241

holiday.

17. Certification of documents. Any document, including but

not Ilmlteor to any nOtlCe, which is required to be submitted~o the Commissioner under this Trading Agreement and Order shall be signed by PSEG or, if PSEG

is not an individual, bv PSEG's chief executive officer

or a duly authorized representative of such officer, as

those terms are defined in §22a-430-3 (b) (2) of the

Regulations of Connecticut State Agencies, and by the

individual(s) responsible for actually preparing such

document, and PSEG or PSEG's chief executive officer and

each such individual shall certify in writing as

follows: II I have I?ersonally examined and am familiar

with the inforrnat~on submitted in this document and all

attachments thereto, and I certify, based on reasonable

investigation, including my inguiry of those individuals respons~ble for obtaining the ~nformation, that the

submitted information is true, accurate and complete to

the best of my knowledge and belief. I understand that

any false statement made in the submitted information is

Dunishable as a criminal offense under §53a-157b of the

Connecticut General Statutes and any other applicable law. "

18. Noncompliance. This Trading Agreement and Order is a

!lnal order or the Comrniss~oner with respect to the

matters addressed herein, and is nonappealable and

immediately enforceable. Failure to comply with this

Trading Agreement and Order may subject PSEG to an

injunction and. penalties.

19. False statements. Any false statement in any information suom~~tea pursuant to this Trading Agreement and Order

is punishable as a criminal offense under §53a-157b of

the Connecticut General Statutes and any other

applicable law.

20. Notice of transfer; liability of PSEG. Until PSEG has

rully comoIled wltn tn~s Trao~ng Agreement and Order, PSEG shall notify the Commissioner in writing no later

than 15 days after transferring all or any portion of

the facility, the operations, the site or the business

which is the subject of this Trading Agreement and Order

or after obtaining a new mailing or location address.

PSEG's obligations under this Trading Agreement and

Order shall not be affected bv the oassage of title to

any property to any other person or'municipality.

21. Commissioner'S powers. Nothing in this Trading Agreement

ana uraer snall arrect the Commissioner's authorlty to

institute any oroceedino or take any other action to

prevent or abate Violations of law, prevent or abate
PSEG Power Connecticut LLC 15 Trading Agreement

and Order No.

8241

22.

pollution, recover costs and natural resource damages, and to impose penalties for past, present, or future

violations of law. If at any time the Commissioner

determines ~hat the actions taken by PSEG pursuant to

this Trad~ng Agreement and Order have not successfully corrected all violations, fully characterized the extent

or degree of any pollution, or successfully abated or

prevented pollution, the Commissioner may ~nstitute any proceeding to require PSEG to undertake further

lnvestigation or further action to prevent or abate

violations or pollution.

P5EG's obligations under law. Nothing in this Trading Agreement ana Oraer snaIl re~ieve PSEG of other

obligations under applicable federal, state and local

law.

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23. No assurance by Commissioner. No provision of this Trad~ng Agreement ana Oraer and no action or inaction by the Commissioner shall be construed to constitute an

assurance by the Commissioner that the actions taken by

PSEG pursuant to this Trading Agreement and Order will

result in compliance or prevent or a~ate pollution.

24. Access to facility. Any representative of the

Department or ~nv~ronmental Protection may enter the

facility without prior notice for the purposes of monitor~ng and enforcing the actions requ~red or allowed

by this Trading Agreement and Order.

25. No effect on rights of other oersons. This Trading A9reement and Order nelther creates nor affects any r~ghts of persons or municipalities that are not parties

to this Trading Agreement and Order.

26. No Creation of Property Rights. This Trading Agreement

ana Oreer aoes no~ create any property rights w~th

respect to these DERCs.

27. Notice to Commissioner of changes. Within 15 days of

toe date ~S~G necomes aware or 2 change in any information submitted to the Commissioner under this

Trading Agreement and Order, or that any such

information was inaccurate or misleading or that any relevant information was omitted, PSEG shall submit the

correct or omitted information to the Com~issioner.

28. Notification of noncomoliance. In the event that P5EG

oecomes aware tnat ~t a~a no~ or may not comply, or did

not or may noe comply on time, with any requirement of

this Tradlng Agreement and Order or of any document

reqUired hereunder, PSEG shall immediately notify by telephone the individual identified in the next
PSEG Power Connecticut LLC 16 Trading Agreement

and Order No.

8241

:~

'~

paragraph and shall take all reasonable steps to ensure

that any noncompliance or delay is avoided or, if

unavoidable, is minimized to the greatest extent

possible. ~ithin five (5) days of the initial notice,

PSEG shal~submit in writing the date, time, and

duration of the noncomoliance and the reasons for the

noncompliance or delay-and propose, for the review and

written approval of the Commissioner, dates by which

compliance will be achieved, and PSEG shall comoly with

any dates which mar be aoproved in writing by the

Commissioner. Not~ficatlon by PSEG shall not excuse

noncomoliance or delay, and the Commissioner's approval of any-comoliance dates orooosed shall not excuse

noncompliance or delay unless specifically so stated by

the Commissioner in writing.

29. Submission of documents. Any document required to be subm~ttea to tne Comm~ssioner under this Trading Agreement and Order shall, unless otherwise specified in

this Trading Agreement and Order or in writing by the

Commissioner, be directed to:

Wendy Jacobs

Department of Environmental Protection

Bureau of Air Management Emissions and Cred~t Trading Section

79 Elm Street

Hartford, Connecticut 06106-5127
PSEG Power Connecticut LLC 17 Trading Agreement

and Order No. 82~1

PSEG consents to the issuance of this Trading Agreement and Order

without further notice. The undersigned certifies that he/she is

fully authorized to enter into this Trading Agreement and Order

and to legally bind PpEG to the terms and conditions of the

Trading Agreement and Order.

Issued as a final order of the

Ie) Environmental Protection on

Signature:

Type Name:

Type Title:

Date:

Connecticut LLC

Vice President - Fossil 0gerations

Januar~ 24, 2003

;"...... .-

CITY OF BRIDGEPORT LAND RECORDS

MAILED CERTIFIED MAIL, RETURN RECEIPT REQu~STED

Certified Document No.

,